Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.
Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.
Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.
The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.
Tuesday, April 19, 2011
SPX: twin peaks, but....
We will know soon enough if there is a double top pattern in play as the symmetary of this chart pattern will have to hold, which means looking for the market to trend lower over the coming days/week. If we see the market move higher (through 1,327), i'd be of the view that this pattern is redundant and a move through 1,337 would confirm that, as the price will have moved above those two columns of 0's from which those downside targets are based.